Washington Post: "Obama administration pushes banks to make home loans to people with weaker credit"

Obama has apparently learned nothing from the recent economic collapse.  I have pointed to evidence on this previously and of course Obama has some complicity in creating that collapse (on this last point see the first chapter in my book Debacle).  But now here is a story from the Washington Post.
The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.
President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession. . . .

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Blogger Cory Brickner said...

There is a fundamental problem when the current administration repeats the very same mistakes of just 5 years prior and expects a different result. That is called insanity.

Is the current administration insane? Or is there a design?

Are they creating moral hazard again so that they can further take state control once everything falls apart and blame "capitalism" for what happens with free-market intervention?

There are two fundamental errors in this statement: 1) That credit creates wealth, it does not. Savings and investment does. 2) That those with weaker credit deserve the same access to money than those with stronger credit. If you have "weak" credit, it is because you are a risk. The administration wishes to socialize this risk at the expense of the taxpayer. This is the moral hazard that creates profits for the bankers and burdens the little guy with the liability. It is unacceptable.

So I ask again, is the current administration insane? Or is there a design?

4/03/2013 12:17 PM  
Blogger Martin G. Schalz said...

This is one heckuva disconnect with reality.

Either the man is an complete idiot, or Dinesh D'Souza's opinion that Obama is doing his best to destroy the American economy in order to reduce our influence overseas is correct.

So, when this fails in a large, loud, grotesque fashion as it did before, is he going to blame Bush and the Republicans again?

4/03/2013 12:29 PM  
Blogger RS said...

Ignorance? Ideology? Insanity?

With this administration, you really don't need to make a choice.

4/03/2013 2:13 PM  
Blogger Jerome East said...

Lets see, isn't that what landed us in this mess to begin with? Guess the old saw about those who don't learn from history being doomed to repeat it is true

4/03/2013 5:15 PM  

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